Financial Survey 2025: Finance Minister Nirmala Sitharaman has tabled the Financial Survey in Parliament on Friday, January 31, 2025.
Financial Survey 2025: Finance Minister Nirmala Sitharaman addresses the media on the BJP delegation assembly with the Election Fee concerning the Yamuna water challenge, in New Delhi on Tuesday. Haryana Chief Minister Nayab Saini, Union Minister Bhupender Yadav, Delhi Bharatiya Janata Celebration (BJP) President Virendra Sachdeva and others additionally current.(Rahul Singh/ANI)
The survey tasks India’s GDP to develop within the vary of 6.3-6.8%.
The 2025 survey got here inside a span of six months from the earlier 2022-23 survey which was offered in July 22, 2024 after the Common Election.
Additionally Learn: ‘Significantly eager on India’: Tim Cook dinner notes India’s worth amid document earnings
What’s the Financial Survey?
The Financial Survey is a compilation of the Indian financial system’s efficiency and authorities insurance policies, in addition to the outlook for the upcoming monetary yr. It’s ready by the financial division of the Division of Financial Affairs (DEA) which is headed by Chief Financial Advisor (CEA). V. Anantha Nageswaran.
The financial survey is split into two components: Half A which analyses financial efficiency primarily based on macroeconomic indicators and financial traits, and Half B which seems at socio-economic points like schooling, poverty, local weather change, and GDP progress outlook, inflation, and commerce.
Additionally Learn: Funds 2025 expectations LIVE: What India needs from FM Nirmala Sitharaman on February 1
10 key highlights of the Financial Survey 2025
The next are 10 key highlights of the Financial Survey 2025.
1. India’s financial system will stay steady
Regardless of world uncertainty, India’s actual GDP progress of 6.4% within the monetary yr 2024-25 (as per first advance estimates of nationwide revenue) stays near the decadal common, in line with the survey.
Because of this, “from an aggregate supply perspective, real gross value added (GVA) is also estimated to grow by 6.4 per cent FY25,” the survey mentioned.
2. All sectors will contribute to progress
All sectors are performing nicely, the Financial Survey doc mentioned. “The agriculture sector remains strong, consistently operating well above trend levels. The industrial sector has also found its footing above the pre-pandemic trajectory. The robust rate of growth in recent years has taken the services sector close to its trend levels.”
3. Inflation is coming underneath management
Retail headline inflation softened from 5.4% within the monetary yr 2023-24 to 4.9% throughout the April-December interval of 2024-25, in line with the survey.
“Despite challenges, there are positive signs for inflation management in India. The Reserve Bank of India and the International Monetary Fund (IMF) project that India’s consumer price inflation will gradually align with the target of around 4 per cent in FY26,” the survey learn.
4. FPI constructive total, FDI exhibits indicators of revival
Overseas portfolio investments (FPIs) have proven a blended development in 2024-25 to this point. Uncertainty within the world markets and profittaking by overseas portfolio traders led to capital outflows. Nonetheless, robust macroeconomic fundamentals, a beneficial enterprise surroundings, and excessive financial progress have stored FPI flows constructive total.
In the meantime, gross overseas direct funding (FDI) inflows have proven indicators of revival within the first eight months of 2024-25, although internet FDI inflows declined relative to April-November 2023 as a result of an increase in repatriation/disinvestment.
5. Foreign exchange reserves are strengthening
The financial survey confirmed India’s Foreign exchange reserves had been at a excessive of $706 billion in September 2024 and stood at $640.3 billion by December 27, 2024, overlaying 89.9% of exterior debt.
Additionally Learn: Gold hits document excessive amid considerations of Donald Trump tariffs
6. Banking and Insurance coverage sector is steady
Business banks have reported a constant decline of their gross non-performing belongings (GNPA) ratio “from its peak in FY18 to a low of 2.6 per cent at the end of September 2024,” in line with the survey.
Other than this, the credit-GDP hole additionally narrowed to 0.3% within the first quarter of 2024-25 from -10.3% in the identical quarter of the earlier yr, which signifies that the current progress in financial institution credit score is sustainable.
Furthermore, insurance coverage premiums grew 7.7% in 2023-24, reaching ₹11.2 lakh crore and whole variety of pension subscribers grew by 16% year-on-year as of September 2024, in line with the survey.
7. Exports are rising
India’s whole exports (merchandise and companies) have registered a gradual progress within the first 9 months of FY25, reaching USD 602.6 billion (6 per cent). Development in companies and items exports, excluding petroleum and gems and jewelry, was 10.4 per cent. Whole imports throughout the identical interval reached USD 682.2 billion, registering a progress of 6.9 per cent on the again of regular home demand.
“The evolving global trade dynamics, marked by gradual shifts towards greater protectionism, require assessing the situation and developing a forwardlooking strategic trade roadmap. By adapting to these trends and leveraging its strengths, India can accelerate its growth and enhance its presence in global trade,” the survey learn.
8. MSME Credit score progress stays robust, private credit score moderates
Sector-wise, the expansion in agriculture credit score as of 29 November 2024 within the present monetary yr was 5.1%. In the meantime, the expansion in industrial credit score picked up and stood at 4.4% as of the top of November 2024, greater than 3.2% recorded a yr in the past.
Throughout industries, financial institution credit score to micro, small, and medium enterprises (MSMEs) have been rising quicker than credit score disbursal to massive enterprises.
As of the top of November 2024, credit score to MSMEs registered a year-on-year progress of 13%, whereas it stood at 6.1% for big enterprises.
Nonetheless, credit score progress to the companies and private loans segments moderated to five.9% and eight.8% respectively, as of the top of November 2024 within the present monetary yr. Amongst the companies sector, the moderation has been pushed by a slowdown in credit score disbursal to NBFCs.
Automobile and housing loans drove the moderation within the private loans phase. By way of rising threat weights to NBFCs and bank cards, RBI’s coverage interventions contributed to the moderation of credit score progress in these segments.
9. Deregulation wanted for progress
The Financial Survey requires deregulation to drive progress.
“A fundamental pre-requisite is to accelerate and amplify the deregulation agenda already underway in the last ten years and work towards giving people back their agency and enhancing the economic freedoms of individuals and organisations,” the survey learn.
That is to improve the capability and know-how of part producers, rising the provision of skilled human assets, addressing useful resource bottlenecks and regulatory impediments to speed up India’s gross mounted capital formation.”
10. Infrastructure sector a key focus, however non-public gamers should take part extra
“Building infrastructure – physical, digital and social – has been a central focus area for the Government in the last five years. This has had various dimensions – increase in public spending on infrastructure, creation of institutions to de-bottleneck approvals and execution and innovative modes of resource mobilisation. In FY25, capital expenditure has gathered momentum postelections,” the survey learn.
“The government has recognised the importance of continuing the pace of infrastructure building and the increasing need to promote sustainable construction practices,” it added.